Rajesh Exports Denies SEBI's Rs 15.15 Lakh Crore Revenue Gap Allegation

After the Securities Exchange Board of India (SEBI) found that Rajesh Exports Limited had misrepresented  Rs 15.15 lakh crore of revenue to its subsidiaries, the Bengaluru-based gold refining company denied any financial irregularities. 

Clarification Issued By Rajesh Exports After SEBI's Interim Order

The order passed by SEBI is an Interim Order in which no conclusive adverse findings of any kind have been reported by SEBI.

“There has been no fine, penalty or any other coercive action by SEBI against the company which clearly establishes that there are no any adverse conclusive findings by SEBI,” the company said via a bourse filing. 

Further, it noted that the company “has done no wrong and all the reporting of the company with regard to it's financials has been correct,” while adding that the core observation in the order is with regard to the mis-reporting of the revenues, “has emerged primarily due to confusion because “SEBI has considered the EBIDTA of Valcambi instead of Revenue hence it has stated that the there is difference of about 97% in the revenue.” 

The consolidated Revenue as stated by the Company is correct.

The entire matter is a result of confusion and communication gap, which the Company is in the process of addressing:with SEBI and the Company is confident that it will be able to clarify the matter with SEBI by presenting all the required and relevant documents.

“It may be noted that SEBI has not made adverse observation with regard to the earnings of the Company, it has only observed suspicion with regard to Revenues which is primarily because of confusion with regard to the Revenues of Valcambi,” it said. 

“There is no reason for any listed entity to inflate revenue and maintain the earnings, this will only reduce the margins of the Company, which would be adverse to the Company,” it added.